Senin, 23 Februari 2015

Financing Your Small Business

In our economy today it's fairly easy to have some financial problems and end up with tough credit. Although this is an overstatement and also depends upon other factors such as employment, standards of living, etc., the analogy holds that when things loosen up, there will be a substantial number of business loans.

Instead, it licenses private lenders, like the community bank on your block, to make loans and if there is a default, Federal government guarantees come to the rescue and reimburse for a certain percentage.

Under Section 503 of the new bill it has set up a secondary market for 504 loans only(to eliminate any confusion, the term "504" refers to a section under the old Small Business Investment Act, and not the current stimulus bill) which applies primarily to larger ventures seeking commercial loans for buying land and buildings.